In order for insurance companies to be profitable, they need to be able to accurately calculate appropriate premiums for their insurance policies. Insurers offering directors and officers insurance coverage typically face additional challenges in that the marketplace tends to dictate the premium at which the coverage will be bought and sold. Because the market drives the premium, the insurer is forced to determine whether or not the market premium fits into their rate plan, loss experience, expense and profit requirements rather than the more typical scenario of the insurer driving the premium based on these components.